Nissan to grant Renault duo seats on key board panels

TOKYO • Japan's Nissan said yesterday it would grant alliance member Renault's representatives seats on key committees of its board, ending a dispute between the two automakers.

Nissan said it will give Renault chief executive Thierry Bollore a seat on its board's audit committee and Renault chairman Jean-Dominique Senard a seat on its nomination committee. Mr Senard will also become vice-chairman of the board.

The move comes after demands by Mr Senard for representation on the committees in return for approving Nissan's overhauled governance structure plunged the two-decade-old partnership into crisis.

"Groupe Renault welcomes Nissan's decision to grant Renault's representatives a seat on the committees of the Nissan board, which will be presented to the general shareholders' meeting on June 25," Renault said in a statement.

"The agreement reached on Renault's presence in Nissan's new governance confirms the spirit of dialogue and mutual respect that exists within the alliance," added Renault, whose merger talks with Fiat-Chrysler broke down this month.

Nissan also said it would nominate Mr Yasushi Kimura, adviser at JXTG Holdings, to chair its board.

The French state has a 15 per cent stake in Renault, while Renault itself owns 43.4 per cent of Nissan.

French ministers have consistently highlighted the importance of ensuring the Renault-Nissan alliance remains strong, before planning any further consolidation with the likes of Fiat-Chrysler.

The 20-year-old partnership between Renault and Nissan has been strained since former leader Carlos Ghosn was arrested for suspected financial misconduct last year. Mr Ghosn denies wrongdoing.

REUTERS

A version of this article appeared in the print edition of The Straits Times on June 22, 2019, with the headline 'Nissan to grant Renault duo seats on key board panels'. Print Edition | Subscribe